1. US President Donald Trump said he has “no intention” of firing Federal Reserve Chairman Jerome Powell.
2. Treasury Secretary Scott Bessent said he hopes “there will be a de-escalation” in the trade war between Trump and China.
3. The market is growing thanks to Trump and Bessent's promising comments.
4. Tesla's first-quarter earnings fell short of expectations.
5. Elon Musk, CEO of Tesla, said he will spend “less” time at DOGE.
6. A safe currency has been strengthening, boosting the exchange-traded fund linked to it.
The latest CNBC All-America Economic Survey shows American views on how US President Donald Trump is managing the economy have soured significantly: For the first time since he took office, more respondents disapprove of the president on economic issues than approve.
Tesla CEO Elon Musk, who has made significant contributions to the Trump administration, has also seen a decline in his reputation and that of his company. According to the same survey, over 47% of the American public has a negative view of Tesla, compared to just 10% for General Motors. For Musk himself, about half of respondents view him unfavorably.
However, the market is open-minded and often reacts almost immediately to any positive changes. On Tuesday, Trump's denial that he wants to oust Federal Reserve Chairman Jerome Powell from office, and Musk's explanation that he will spend less time in Washington, DC, was enough to lift stock indexes and Tesla shares higher — despite the company's first-quarter earnings missing expectations.
Although Cassio in Shakespeare's Othello describes reputation as the “immortal part” of himself, in the market, measures of character tend to be more forgiving.
Things you need to know today
‘No intention’ to fire Powell: Trump
US President Donald Trump said he has “no intention” of firing Federal Reserve Chairman Jerome Powell, he told reporters on Tuesday. “There is no intention whatsoever,” Trump said in the Oval Office when asked to clarify that he is not seeking to remove Powell. “I would never do that.” Nevertheless, the president added that he “would like to see [Powell] be a little more aggressive on his idea of lowering interest rates.”
‘De-escalation’ in the US-China trade war
Treasury Secretary Scott Bessent said in a closed-door meeting on Tuesday that he hopes “there will be a de-escalation” in Trump’s trade war with China in “the very near future,” a person in the room told CNBC. Negotiations with China may be “a struggle,” Bessent said at a private investors summit hosted by JPMorgan Chase, but added that neither side “believes that the status quo is sustainable.”
Market surges on promising news
US markets rose on Tuesday following statements from Trump and Bessent. The S&P 500 increased by 2.51%, the Dow Jones Industrial Average rose by 2.66%, and the Nasdaq Composite gained 2.71%. The Asia-Pacific markets surged on Wednesday. The Hang Seng Index of Hong Kong rose nearly 2.5%, and Japan's Nikkei 225 climbed nearly 2%. However, the International Monetary Fund on Tuesday downgraded its growth forecast for major economies in Asia for 2025, citing trade tensions and “high policy uncertainty.”
Tesla's earnings decline
Tesla reported first-quarter revenue and earnings on Tuesday that fell short of expectations. Total revenue declined 9% to $19.34 billion from $21.3 billion a year ago. Net income plummeted 71% to $409 million, or 12 cents per share, from $1.39 billion or 41 cents a year earlier. Analysts had expected revenue of $21.11 billion and earnings of 39 cents per share, according to LSEG data. Tesla is planning to enter the Indian market, CFO Vaibhav Tanej said during its earnings call.
Musk said he will spend less time at DOGE
Despite Tesla's disappointing earnings, released after the market closed, the company's stock rose more than 5% in extended trading. Investors may be welcoming CEO Elon Musk's statement that the time he spends running Trump's Office of Government Efficiency will decrease “significantly” starting in May. As of Monday, Tesla's stock had fallen 44% for the year, resulting in $11.5 billion in market value loss for Tesla short sellers in 2025.
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